The Hindu Business Line : Gandhi City to develop SEZ near Bangalore

Gandhi City for Advanced R&D Ltd project plans an investment of $600 million for its proposed 1000 acre-SEZ near Bangalore. The company plans to invest $150 million in the first phase spread over initial two-three years, which it has already tied up. However, the land acquisition for the project is not yet through.

The project proposes to emerge as a place where global players from pharmaceutical, automotive, aviation and technology sectors can put up their R&D units. It would also approach global universities to put up their research centres.

"We want to emerge as a research ecosystem where researchers, companies and educators can co-exist. We would also provide integrated residential complexes," Mr Giri Devanur, Chairman, Gandhi City for Advanced R&D Ltd, told Business Line. Mr Devanur was the founder of Ivega Corporation, which was merged with TCG Software in 2004, to form TCG Ivega.

"We would take up land acquisition process with the Karnataka Industrial Area Development Board (KIADB) after the special economic zone (SEZ) proposal is approved," Mr Devanur said. On the expected cost of land, he declined to comment specifically. "It would be firmed up by KIADB," he said adding that the project is likely to be considered for approval by Commerce Ministry on August 8. Mr Devanur said that the Karnataka Government has assured them that the land is "acquirable" and can have "water and power supply."

On financing plans, he said, "We have already tied up $150 million for the first phase, which includes $50 million equity and $100 million debt." In phase II, the company plans $200 million investment, which is when we would build the incubation centre. The project proposes implementation over three phases in eight years.

Companies can have options of buying land and using it to construct their R&D base, or buy a `built-to-suit' space. Smaller companies and university research groups can take on lease facilities offered by parks.

"We plan to offer basic infrastructure for research like a vet lab, systems for clinical research, space for road tests for automobiles, electronics lab, which various firms can lease for relatively shorter durations," he said.

For its proposed incubation centre, the company is working on putting up a seed capital of $50 million. It is also in talks with various venture capitalists.

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